Government Auto Insurance

If you're looking to learn more about government auto insurance, it is important to note that it is only offered in three states, Hawaii, California, and New Jersey. Government auto insurance can help those find insurance who couldn't otherwise, but it may be costly, so it is usually best to first take advantage of every discount to find the best rates possible.

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Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and Cinncinati.com. ...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent

UPDATED: Dec 9, 2020

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Can't-Miss Facts

  • Three states offer low-cost auto insurance to individuals and families who live below their state's poverty line.
  • These states are Hawaii, California, and New Jersey.
  • It is for the best that you not rely on government assistance and instead take advantage of each discount offered by insurers.

Are you in the market for, or interested in learning about, government auto insurance? Look no further, because all the information you'll need is here. We'll even go into whether the government will help pay for auto insurance in your state, should you be classified as a low-income individual.

With that being said, those states are few and far between and you would be better off taking advantage of auto insurance discounts or obtaining pay-per-mile auto insurance as opposed to seeking help from the government.

Get a start on finding government auto insurance quotes in your area by typing your ZIP code into our helpful tool above to find reasonable rates in your area.

Is there government assistance for auto insurance?

There are exactly three states – Hawaii, California, and New Jersey – that provide special auto insurance to those who cannot afford standard insurance from their local companies.

California has the California Low-Cost Automobile (CLCA) insurance program for low-income individuals.  This offers liability and underinsured motorist protection provided the driver meets the eligibility requirements of being within the federal poverty limit, owning an automobile valued at less than $25,000, and having a clean driving record.

Here is a video that sheds further light on the CLCA, courtesy of the California Department of Insurance.

Now let's take a look at a table showing what California residents of varying demographics pay without this assistance.

California Average Annual Rates by Demographics and Company
CompanySingle 17-year-old femaleSingle 17-year-old maleSingle 25-year-old femaleSingle 25-year-old maleMarried 35-year-old femaleMarried 35-year-old maleMarried 60-year-old femaleMarried 60-year-old male
Allstate Northbrook Indemnity$8,098.88$10,188.73$3,742.44$4,115.50$2,921.24$2,923.87$2,126.03$2,148.03
AMCO Insurance$8,318.27$9,186.72$3,904.76$3,858.43$3,272.83$3,124.42$2,863.68$2,699.52
Farmers Ins Exchange$8,667.08$14,189.14$3,218.46$3,585.17$2,715.31$2,715.31$2,451.83$2,451.83
Geico General$5,433.56$5,529.48$2,566.22$2,624.98n/an/an/an/a
SAFECO Ins Co of America$5,014.43$5,348.46$2,593.72$2,620.60$2,303.99$2,177.93$2,145.20n/a
State Farm Mutual Auto$6,089.50$7,555.39$3,663.92$3,777.69$3,310.18$3,310.18$2,957.44State Farm Mutual Auto
Travelers Commercial Ins Co.$5,165.60$5,906.73$3,249.64$3,179.78$2,497.45$2,417.86$2,206.26Travelers Commercial Ins Co.
United Financial Casualty$4,767.78$5,748.65$2,576.92$2,771.33n/an/an/an/a
USAA CIC$4,404.58$4,428.83$2,670.51$2,523.86n/an/an/an/a
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New Jersey has the Special Automobile Insurance Policy (SAIP) which covers medical costs only. The main benefits of this are that it is considered "dollar-a-day" insurance, yet, in spite of the low cost, those who have it are still considered insured by the state.

Hawaii has a plan as well, though it is available only to certain subsections of the population. Namely, it provides auto insurance free of cost to those over the age of 65 who have disabilities as well as an income level that is at least 34 percent below the poverty line.

In short, if you live in one of these states, you have options for government auto insurance for low-income families. What if you don't live in one of these states? Let's move on to find out.

Who has the cheapest auto insurance?

When it comes to the cheapest auto insurance, it all comes down to discounts applicable to you. Which government auto insurance company is the best? USAA is seen, in general, as providing the lowest insurance rates, but you must comparison shop. Never take the rates of the first company you check as the best rates you're going to find.

Inquire with the agents of each company you check to see what discounts they offer. For instance, maybe you are a student. Comparison shop the company's student discounts with those from other companies.

Who has the cheapest auto insurance for seniors?

Remember how we talked about discounts? When you're comparison shopping, ask about senior discounts, should they apply to you. Most companies offer them, and they can prove to be quite competitive. For instance, Allstate offers discounts to those who are older than 55 or even just working part-time. Again, comparison shopping is important.

Are you ready to buy government auto insurance? Please feel free to type your ZIP code into our helpful tool below to find affordable government automobile insurance rates in your area.

Enter your ZIP code below to compare auto insurance rates.

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Frequently Asked Questions: Government Auto Insurance

#1 – Who has the cheapest auto insurance in Las Vegas and Louisiana?

For Las Vegas, Geico. For Louisiana, Geico or Allstate.

#2 – Who has the cheapest full coverage insurance?

It depends on your area. With that being said USAA and Erie are hard to beat.

#3 – Is AAA cheaper than Geico?

The opposite tends to be true.

#4 – How can I get dollar a day on my insurance?

If you live in New Jersey and are an uninsured driver you are eligible.

#5 – Is Progressive Insurance good?

Sure, they've been around for a while and offer competitive pricing.

#6 – What is the best auto insurance company?

There really is no insurer that is objectively the best. Just comparison shop for prices and always be sure to look up customer reviews for insurers in your area.

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